Is final expense insurance worth it?

What it means

• The honest answer starts with what the policy actually does: a small whole-life policy pays a cash benefit — typically $2,000 to $40,000 — to a named beneficiary. That is meaningful for a household whose primary risk is being unable to cover a funeral and settle end-of-life bills quickly. NFDA's 2023 benchmark ($8,300 burial with viewing / $6,280 cremation) is the number to size against.
• It is not meaningful in the same way for a working-age household whose primary risk is losing an income earner — that is what term life insurance is priced for, and term buys far more coverage per dollar. Final expense is also not meaningful if a household has plenty of liquid savings earmarked for funeral costs, because the policy is a lifetime commitment to premiums.
• The clearest "yes" is a household with modest savings, health that makes term unaffordable or unavailable, and a specific desire to protect surviving family from funeral costs. Compare at least two quotes before buying, and check any agent's license via your state Department of Insurance.